Estee Lauder Companies, Inc. (The) (NYSE: EL) and Unilever NV (NYSE:UN) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

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This is a breakdown of recent ratings and recommmendations for Estee Lauder Companies, Inc. (The) and Unilever NV, as reported by MarketBeat.com.

Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.2%. Unilever NV pays an annual dividend of $1.41 per share and has a dividend yield of 2.3%. Estee Lauder Companies, Inc. (The) pays out 40.6% of its earnings in the form of a dividend. Unilever NV has increased its dividend for 3 consecutive years. Unilever NV is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Estee Lauder Companies, Inc. (The) has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Unilever NV has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

54.6% of Estee Lauder Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 9.0% of Unilever NV shares are owned by institutional investors. 17.0% of Estee Lauder Companies, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Unilever N.V. is a fast-moving consumer goods (FMCG) company. The Company’s segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company’s geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall’s), Hellmann’s, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.